Paul J.P. Loscocco: Public must fight for needed state aid

Monday

Dec 24, 2007 at 12:01 AMDec 24, 2007 at 7:22 PM

Several weeks ago, with very little debate and even less public notice, the Massachusetts Legislature enacted a so-called "deficiency budget" which the governor promptly signed into law. With the stroke of a pen, nearly $450 million in new-found "surplus" funds was quietly spent during a single afternoon. Yet the message from Beacon Hill could not have been louder: there will be no additional local aid from the state this year to our struggling cities and towns.

Paul J.P. Loscocco, Guest columnist

Several weeks ago, with very little debate and even less public notice, the Massachusetts Legislature enacted a so-called "deficiency budget" which the governor promptly signed into law. With the stroke of a pen, nearly $450 million in new-found "surplus" funds was quietly spent during a single afternoon. Yet the message from Beacon Hill could not have been louder: there will be no additional local aid from the state this year to our struggling cities and towns.

In theory, a deficiency budget is supposed to use additional available funds to cover actual "deficiencies" in current spending during a fiscal year. In reality, despite the repeated "warnings" about a $1 billion budgetary shortfall, nearly $450 million in surplus funds was "found" and promptly spent on such critical new items as pay raises for elected constitutional officers, doubling the size of the Governor's Office in Washington, D.C., and (accounting for the bulk of the spending) the full funding of numerous union contracts.

Notwithstanding the staggering deficiencies in municipal budgets that all our local communities are experiencing, not one penny of the $450 million was spent that afternoon on additional municipal assistance. So much for all the talk on Beacon Hill about meaningful property tax relief.

Coincidentally, this $450 million figure plays prominently in what should be the cause of consternation - if not outrage - by those in our communities facing significantly increasing property tax bills and the prospect of even further Proposition 2 1/2 overrides. For three fiscal years in a row the state budget "capped" the amount of lottery aid - meaning, in essence, that the state "skimmed" funds from lottery collections which by law were supposed to be distributed to all municipalities in the commonwealth under a specific formula.

And the total amount diverted from local aid to help the state cover its budget shortfalls? - you guessed it, $450 million. The net result of this diversion of funds is that our local communities were forced to make up this difference.

But hindsight shows that withholding this much money was not necessary to help our state get through difficult financial times. At the same time that cities and towns were taking money out of their stabilization funds just to maintain services, the commonwealth's Rainy Day Fund doubled in size - and is now at more than $2 billion. Indeed, when the state budget was enacted earlier this year it was supposed to be balanced by withdrawing $450 million from this stabilization fund - a withdrawal which never occurred because even more revenues (i.e., taxes) were collected than anticipated.

Now don't get confused because the numbers are the same - not only is the state still holding the $450 million in its Rainy Day Fund (which it was going to spend but didn't because of the extra $450 million in taxes collected) but the Legislature actually spent an additional $450 million in the deficiency budget - with no extra spending for municipal assistance. Meanwhile, despite other significant increases in the local aid formula, our communities are now left facing serious continued budget shortfalls.

During the limited deficiency budget debate, I co-sponsored an amendment requiring the immediate distribution of this $450 million to municipalities as a one-time unrestricted local aid payment based on the lottery formula. In Holliston, for example, (where local officials are struggling to address a deficit currently projected at $1.3 million) the proposed distribution would mean $729,144 in additional funds. Similar examples are found in nearly every municipality in the commonwealth. Unfortunately, this amendment was not adopted - and other spending priorities prevailed.

I have since co-sponsored a bill, along with several of my legislative colleagues, that again tries to force the immediate return to municipalities of the $450 million that was diverted during the state's fiscal crisis. This bill is currently pending as House Docket 4651 before the Rules Committee in the House of Representatives where I will relentlessly push for its passage.

Those in the Legislature with other spending priorities will recite that the commonwealth cannot afford to spend an additional $450 million in local aid - notwithstanding that earlier this year many of these same legislators were proudly declaring that they had balanced the state budget by proposing to withdraw the very same $450 million from the Rainy Day Fund as a measure of "fiscal responsibility." The stark reality is that it's pouring rain - our cities and towns are in fiscal crisis and desperately need these additional local aid funds right now.

This proposed legislation is asking nothing more than the return to our communities of this "extra" money that was previously taken (before it all gets spent) at a time when immediate receipt of these funds will make a meaningful difference - as local budgets are being discussed for the upcoming fiscal year and difficult choices are being made. There should be no higher spending priority in the Legislature at present. Simply put: there is no substitute for public outcry on this issue of critical importance - and the time to voice your support is right now.

If you would like further information on this legislation and what you can do to help, you may contact me at the State House - (617) 722-2800 x8438 - or by e-mail at rep.paulloscocco@hou.state.ma.us

State Representative Paul J.P. Loscocco represents the people of the 8th Middlesex District in the Massachusetts House of Representatives which includes the towns of Holliston, Hopkinton, Medway, Southborough, and Westborough. He is a member of the House Committees on Ways and Means, Transportation, Housing, and Labor and Workforce Development.

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